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Business & Economics

Q&A: What is the consumer price index? An economist explains

Phys Org
Summary
Nutrition label

89% Informative

The U.S. Bureau of Labor Statistics released the latest inflation report on March 12 .

The CPI reflects the cost of a representative market basket of goods and services purchased by urban consumers.

Kenneth Louie , associate professor of economics at Penn State Behrend , explains what the CPI is and why American consumers should pay attention.

Changes in the CPI can affect the economic well-being of individuals in other ways.

The CPI is used to adjust income eligibility levels for government assistance, federal tax brackets, federally mandated cost of living increases, private sector wage and salary increases, and consumer and commercial rent escalations.

VR Score

95

Informative language

98

Neutral language

57

Article tone

formal

Language

English

Language complexity

59

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

medium-lived

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